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March 21, 2022

Bangladesh Shipping seeks $22.4m insurance claim after missile hits vessel

This is considered the first major marine insurance claim to be made as a result of the Russia-Ukraine conflict.

Understand the impact of the Ukraine conflict from a cross-sector perspective with the Global Data Executive Briefing: Ukraine Conflict

State-owned company Bangladesh Shipping Corporation is requesting $22.4m from its insurer, Sadharan Bima Corporation, after its cargo ship Banglar Samriddhi was hit by a missile in Ukraine earlier this month.

This is the first major insurance claim to be made as a result of the Russia-Ukraine war, reported Reuters, citing government officials.

Last week, the International Maritime Organisation (IMO) announced plans for the creation of a safe maritime corridor, which would allow ships caught in high-risk areas of the Black Sea and the Sea of Azov to pass through.

Bangladesh-flagged Banglar Samriddhi was hit by a missile during explosions at night from 2 to 3 March, and one crew member was killed. The other 28 crew members have been evacuated to Bangladesh.

The Bangladeshi vessel has been stuck at the Olvia port since 24 February due to the Russian invasion of Ukraine.

Kyiv has accused Moscow of targeting its port facilities.

While dismissing claims of targeting civilians or merchant ships, the Russian embassy in Dhaka stated that the circumstances of the incident are ‘being established’.

According to a source from Sadharan Bima, the war risk insurance for the vessel is provided by Sadharan Bimam and reinsured by Lloyd’s of London broker Tysers.

The source also noted that Shadharan Bima’s insurance exposure to the vessel is 10% while the remaining 90% is covered by Tysers.

According to a senior Bangladesh Shipping official, the vessel did not have cargo on board when it reached the port in Ukraine.

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